LONDON: Britain's lack of housing makes the economy particularly vulnerable to build-ups of mortgage debt, Bank of England deputy governor Jon Cunliffe said on Tuesday.
"To the extent we can solve that underlying structural problem, and bring a balance between demand and supply then yes, it takes away this underlying vulnerability for the economy," Cunliffe said in a question and answer session at a conference hosted by the British Property Forum.
"But the Bank can't do that. All we can do is try to manage the consequences," he added.
Cunliffe also said the rapid growth of small 'buy-to-let' property investors created a financial stability challenge if they decided to exit the property market following a fall in prices.
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